The 13th of April (UPI) — An investor in Twitter has taken Elon Musk to court for failing to disclose his ownership stake in the social media platform, claiming that it left other investors in the company unaware of their investments while the richest person on the planet was able to purchase artificially discounted options.Elon Musk, who currently owns 9.2 percent of Twitter's stock, began buying Twitter shares in January, and by March 24, he had accumulated a more than 5 percent stake in the company.
NPR has obtained a copy of the federal security class action lawsuit filed on Tuesday by Marc Bain Rasella, claiming Musk is liable for losses suffered by Twitter investors who sold their shares between the time he bought a 5% stake in the company and revealed his ownership interest.
Unnamed plaintiffs in the suit filed by Rasella on behalf of other unknown plaintiffs claim that Musk was required to file a Schedule 13 form to disclose his ownership in Twitter within 10 days of surpassing 5% of the company's stock.
Despite this, Musk didn't actually file the required paperwork until April 4 — a revelation that sent Twitter's stock plummeting by 27% to $49.97, up from $39.31 just three days prior.When Twitter investors sold stock between March 24 and April 4, Rasella argues that Musk's false statements cost them money and allowed the company to purchase more stock at a discounted price, saving Musk $143 million.
It's stated in the documents that "Defendant Musk is liable for the false statements".
Rasella is asking the court to award compensation and punitive damages to him and others who sold stock without knowing Musk owned them, as well as legal fees and expenses.
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